BlackBerry Ltd

BlackBerry Ltd (NYSE: BB) is the leading provider of security software to enterprises and the government.

Investment Rationale – WATCH at USD 9.88

• With regards to the top-line business, the Company had posted approximately 15.53% year-on-year drop in revenue during Q1 FY22.
• The stock price is highly volatile as it witnessed a drop of around 65.66% from the levels of 52 -week high of USD 28.77 reached on 27 January 2021.
• The consensus forecast had indicated that the Company would remain loss-making for FY22 and FY23.
• From a technical standpoint, BB is trading lower than the 20-days exponential moving average of USD 11.48, indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the volatile nature of the stock and a drop in top-line revenue during Q1 FY22, we have given a “WATCH” recommendation on BlackBerry Ltd at the closing market price of USD 9.88 (as of 19 July 2021).

Sundial Growers Inc

Sundial Growers Inc (Nasdaq: SNDL) is a consumer-packaged goods entity that operates through two segments – Cannabis and Investment.

Investment Highlights – WATCH at USD 0.8086

• In the last financial update for Q1 FY21 (for the three months ended 31 March 2021):
  • SNDL reported a decline in revenue and worsened net losses versus Q1 FY20.
  • Revenue and Net Income from continuing operations were declined by 29% and 255%, respectively, against Q1 FY20.
• Due to Covid-19 uncertainties, SNDL might fail to achieve expected sales volume, and there is a likelihood of higher contingent liabilities.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 0.89), reflecting a bearish price momentum.
• In the last year, SNDL' s price has fallen ~60.99%, reflecting significant underperformance against the Nasdaq index benchmark.
• On & July 2021, SNDL raised commitment to SunStream Bancorp by CA$350 million.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the weak fundamentals, the substantial downtrend in prices, unfavourable technical stance, and macroeconomic uncertainty, we have given an “WATCH” stance on Sundial Growers Inc at the closing price of USD 0.8086 (as on 19 July 2021), while we look forward to reviewing the FY21 results.  

Corbus Pharmaceuticals Holdings Inc

Corbus Pharmaceuticals Holdings Inc (Nasdaq: CRBP) is a clinical-stage drug development entity focusing on the endocannabinoid system.

Investment Rationale – WATCH at USD 1.42

• In terms of financials for Q1 FY21
  • CRBP did not generate any product revenue, and even the revenue from ‘award and licenses’ reduced significantly against Q1 FY20.
  • At the end of Q1 FY21, the Company had US$125 million in cash and cash equivalents.
• As of 31 March 2021, CRBP had approximately US$320,159,000 in accumulated deficit.
• CRBP reported top-line results from DETERMINE Phase 3 Study of Lenabasum on 24 June 2021.
• The growth trajectory depends upon external financial resources since the Company has negative cash flows from operations.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 1.71), reflecting a bearish price momentum.
• In the last one year, CRBP’s s price has fallen ~79.45%, reflecting significant underperformance against the benchmark, Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the reduced revenue generation, negative cash flows from operations, significant losses, bearish price momentum, and macroeconomic uncertainties, we have given an “WATCH” stance on Corbus Pharmaceuticals Holdings Inc at the closing price of USD 1.42 (as on 19 July 2021), while we look forward to monitoring how the Covid-19 pandemic will impact its business and operations.

Palatin Technologies Inc

Palatin Technologies Inc (AMEX: PTN) is a biopharmaceutical entity focusing on melanocortin and natriuretic peptide receptor systems.

Investment Rationale – WATCH at USD 0.5111

• On 17 June 2021, the Company reported Q3 FY21 results and reported
  • US$68.6 Million in Cash and Cash Equivalents as of 31 March 2021.
  • 89% increase in gross products sales and 154% increase in net revenue against Q1 FY20.
  • However, net loss was aggravated against Q1 FY20 due to higher operating expenses.
• On 29 June 2021, PTN reported Positive End-of-Phase 2 Meeting with FDA on PL9643 regarding the treatment of dry eye disease.
• As of 31 March 2021, PTN had accumulated deficit of US$337,861,113. Moreover, the profitability is uncertain in the foreseeable future.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 0.57), reflecting a bearish price momentum.
• In the past six months, PTN’ s price has fallen ~43.21%, reflecting significant underperformance against the benchmark, NYSE AMS index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the uncertain outlook, history of losses, challenging market conditions, we have given a “WATCH” stance on Palatin Technologies Inc at the closing price of USD 0.5111 (as on 19 July 2021).

Blue Apron Holdings Inc

Launched in 2012, Blue Apron Holdings Inc (NYSE: APRN) provides cooking recipes to its customers.

Investment Rationale – WATCH at USD 4.00

• In Q1 FY21, APRN reported higher operating expenses against Q1 FY20, while it remained into net losses.
• The Company has a history of net losses and negative operating cash flows.
• The Covid-19 pandemic and worsened economic conditions can change the consumer behaviour and their spending habits.
• As of 31 March 2021, APRN had accumulated deficit of US$593,854, against US$578,133 on 31 December 2020.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 4.19), reflecting a bearish price momentum.
• In the past year, APRN’s s price has fallen ~71.69%, reflecting significant underperformance against the benchmark, NYSE index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the uncertain outlook, history of losses, challenging market conditions, we have given a “WATCH” stance on Blue Apron Holdings Inc at the closing price of USD 4.00 (as on 19 July 2021), while we look forward to reviewing its Q2 FY21 results, scheduled for release on 3 August 2021.

Idera Pharmaceuticals Inc

Idera Pharmaceuticals Inc (Nasdaq: IDRA) is a clinical-stage biotechnology entity focusing on immuno-oncology therapies.

Investment Rationale – WATCH at USD 1.03

• In Q1 FY21, the Company did not generate any revenue. As of 31 March 2021, the Company had an accumulated deficit of US$717.8 million.
• On 18 May 2021, IDRA announced that it did not meet its primary endpoint of objective response rate and will not continue ILLUMINATE-301.
• From a technical standpoint, the current market price is sustaining below the 20-day EMA (USD 1.14), reflecting a bearish price momentum.
• In the past year, IDRA’s price has fallen ~60.99%, reflecting significant underperformance against the benchmark, Nasdaq index.

Share Price Chart

 (Data Source: REFINITIV, Analysis done by Kalkine Group)

Conclusion

Based on the disappointing objective response rate results from ILLUMINATE-301 uncertain outlook, substantial operating losses, we have given a “WATCH” stance on Idera Pharmaceuticals Inc at the closing price of USD 1.03 (as on 19 July 2021), while we look forward to reviewing how the Company will secure new commercial-stage assets.

*The reference data in this report has been partly sourced from REFINITIV.